Wednesday, August 01, 2007

Headline: Buyers Are Finding Co-Op Values in Upper Manhattan

When did this article appear in the New York Times? Try 1983. Choice snippets: "PRICES, with upgraded kitchens and baths and other improvements, are in the middle to high $30,000 range for one-bedrooms, $40,000 to $50,000 for two-bedrooms and $80,000 to $90,000 for six-and-a-half-room duplexes." (Basically add on a zero to each of those prices and you're about where things stand today.) "Another recent co-op buyer was Celenia Olmo, an executive secretary who sold a house in Brooklyn. She said it took her a half hour to commute to the World Trade Center on the IND A train. ''I was looking to rent, but the rents in Manhattan were out of sight,' she said. Calculating that she would be paying in rent within a few years what it would cost her to buy, she bought a one-bedroom apartment in Park Terrace East for about $29,000."

2 comments:

jason said...

just kill me now please.

Anonymous said...

I've been here a long time and have no regrets about having rented instead of bought. NY real estate underperformed the stock market for the same period: '83 - the present. When the Times article was written in Sept of '83, the Dow was about 1230. Now it is about 13,200.

Buying, owning and selling a coop requires time, energy and expense including maintenance, renovations, taxes, closing costs, broker commissions, interest payments, etc. Owning a stock index fund or funds requires no maintenance and minimal expenses by comparison. Over the long-term, it's less of a headache and offers greater liquidity and financial diversification compared to owning NYC real estate.